Titan Company Faces Share Price Decline Amidst Weaker-Than-Expected Q4 Results
Shares of Titan Company witnessed a sharp decline of over 7% in morning trade on the Bombay Stock Exchange (BSE) on Monday, May 6, following the company's announcement of weaker-than-expected March quarter results. The share price opened at ₹3,481.10, marking a significant drop from its previous close of ₹3,535.40, and fell over 7% to ₹3,287. By mid-morning, Titan's share price was trading 5.75% lower at ₹3,332 apiece.
After the market closed on Friday, May 3, Titan reported a 5% year-on-year rise in consolidated net profit, amounting to ₹771 crore for the quarter ending on March 31, 2024. The company's total income for the quarter saw a 22% YoY increase, reaching ₹11,472 crore. Additionally, the Earnings Before Interest and Taxes (EBIT) for the quarter grew by 10% YoY to nearly ₹1,192 crore.
The Jewellery segment of Titan witnessed a 19% YoY growth in total quarterly income, amounting to nearly ₹8,998 crore, while the 'Watches & Wearables' segment's total income for the quarter stood at ₹940 crore, reflecting an 8% YoY increase.
Top brokerage firms have retained their recommendations on Titan stock, albeit with some adjustments due to factors like gold inflation and fair valuation. Motilal maintained a buy call on Titan stock with a target price of ₹4,100, emphasizing Titan as a top consumer discretionary play in India. However, the firm revised its earnings per share (EPS) estimates for FY25E and FY26E downward by 6% and 5%, respectively.
Kotak has an add call on Titan stock with a revised fair value of ₹3,600, down from ₹3,750, and JM Financial maintained its buy call while reducing the target price to ₹3,825 from ₹3,940. Analysts are closely monitoring Titan's performance amidst challenges such as high gold inflation and competitive pressures, providing insights into the company's growth outlook and margin projections.
As Titan Company navigates through market fluctuations and competitive dynamics, investors and analysts alike are keenly observing the company's strategic moves and financial performance to gauge its resilience and growth potential in the ever-evolving market landscape.
